E-Alert
December 18 , 2009
Estate Tax to Expire (Temporarily?)
The 45% tax on estates of over $3.5 million for individuals ($7 million per couple), is scheduled to expire on December 31, 2009. Efforts in Congress to extend the estate tax at its current level have ceased for the time being. The estate tax would return in 2011 at a 55% rate for all estates over $1 million.
During the 2010 window, estates would be taxed at the capital gains rate of 15 to 28%. These rates would apply when heirs sell off more than $1.3 million of inherited assets.
However, it is possible Congress may pass a law in 2010 that is retroactive to January 1, 2010. We will keep you apprised of any new and pending legislation as it develops.If you have any questions regarding the information in this article, or have any other issues you would like to discuss, please feel free to contact the DZH Phillips tax department at 415.781.2500 or email cpas@dzhphillips.com.
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DZH Phillips LLP is one of the leading public accounting and strategic consulting firms in the San Francisco Bay Area. We provide the long-term relationships, industry expertise, and consistently high-quality service our clients need to make the right decisions today and in the future.
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